Making Tax Digital (MTD) for Income Tax
Making Tax Digital (MTD) is the biggest change to UK tax in a generation, moving from a once-a-year Self Assessment to a real-time, quarterly digital system.Direct Answer
MTD for Income Tax is an HMRC initiative requiring self-employed individuals and landlords to keep digital records and submit tax updates every three months using compatible software.
URGENT: April 2026 Is Weeks Away
If your qualifying income exceeded £50,000 in the 2024/25 tax year, your MTD start date is 6 April 2026. If you are not yet registered, act now to avoid HMRC penalty points.
How It Works
- From April 2026, if your qualifying income (gross self-employment or rental income) exceeds £50,000, you must join MTD.
- From April 2027, this extends to those earning over £30,000.
- You will send four "Quarterly Updates" and one "Final Declaration" each year, instead of one annual return.
- The Final Declaration is completed at the end of the tax year — it confirms your income totals and any additional allowances, replacing the old Self Assessment return for mandated taxpayers.
How Taxd Handles MTD for You
- Real-Time Tax Estimate: See your tax liability update automatically each quarter — no January surprise.
- One-Click Submission: Submit your quarterly updates directly to HMRC without leaving the Taxd platform.
- Guided Final Declaration: We walk you through the year-end sign-off step by step.
Not sure if MTD applies to you yet? Check your eligibility on Taxd in 60 seconds.